New Frontier Data: Cannabis-Infused Product Sales Will Approach $3 Billion in 2020
Sales of cannabis-infused products are poised to reach $3 billion in the U.S., according to New Frontier Data, a global marijuana research firm based in Washington D.C.
In a recent report, New Frontier found that infused products such as edibles and beverages account for 14% of total U.S. cannabis sales. It is the third largest category behind flower (37%) and vape (32%).
The report, which analyzed the infused products market and examined consumer buying habits, was created in partnership with SōRSE Technology, a water-soluble hemp and CBD emulsion specialist.
According to New Frontier, solid edible products comprise more than 90% of the top-selling infused products at U.S. cannabis dispensaries. Gummies are the top-selling infused item, the firm said, adding the concerns about the COVID-19 outbreak could help stoke additional sales.
“As alternative ways to consume cannabis beyond combustibles gain popularity during the current coronavirus (COVID-19) crisis, not surprisingly we are seeing a spike in consumption of edibles and other infused products,” New Frontier Data Founder & CEO Giadha Aguirre de Carcer said via a press release. “We anticipate demand for innovative non-combustible ways to consume cannabis both recreationally and medicinally to continue to grow.”
Indeed, cannabis users have increased their consumption of non-combustible products since the COVID-19 crisis began, according to separate findings. Meanwhile, 29% of all cannabis users have reported increased marijuana use since during the outbreak.
When making THC-infused product purchases, consumers are most concerned with quality and price, New Frontier found.
According to the firm, 87% of those surveyed said product quality was a top purchasing factor, followed by 72% who said price played a role in the decision-making process and 70% who looked at ingredients panels. Interestingly, only 38% of consumers surveyed said branding played a role.
Meanwhile, CBD-infused product users prioritize price (87%) and CBD content (86%) when making their selections.
“Consumers tend to have disparate, diverse expectations when it comes to infused products, but agree that quality is a fundamental factor in purchasing decisions,” the New Frontier report reads. “In both the CBD and marijuana markets, consumers consistently listed ingredients, dosage, and testing results as the most important factors.”
According to New Frontier, legal U.S. cannabis sales are expected to grow by 25% to more than $18 billion.